rare earths & automotive industry learnings from the …€¦ · rare earths & automotive...
TRANSCRIPT
DSPG/EL 23/04/2015
CONFIDENTIAL
RENAULT PROPERTY
C
RARE EARTHS & AUTOMOTIVE INDUSTRY
Learnings from the 2011 crisis - A useful warning signal…
ASTER Conference
Orléans, April 23 2015
Philippe Schulz
Expert Leader
Environment, Energy & Raw Materials
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DSPG/EL 23/04/2015
Raw materials in automotive costs Negative financial impact almost every year on Renault operations
Materials @Renault ~ 5,5 Bn€/yr
Matière
Valeur de
transformation
Amortissement
outillages
Logistique
industrielle
POE
69 %
5 %
16 %
5 %
5 %
Materials
VT
invests logistics
Ext. Parts
Production
cost
Direct Raw Material price
variation impact on
Renault Operating Margin
2005 - 357 M€
2006 - 430 M€
2007 - 236 M€
2008 - 359 M€
2009 + 148 M€
2010 - 148 M€
2011 - 509 M€
2012 - 55 M€
2013 + 86 M€
2014 + 134 M€
Source : Renault Financial Reports
Rare Earths content < 250 g per car
700 tons of yearly usage (La, Ce, Y, Nd, Dy)
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DSPG/EL 23/04/2015
Raw materials : A new paradigm for the manufacturing industry
1. Sharp price increases in raw materials since 2000 have erased all the real price declines of the 20th century
2. High market volatility….with (very) highs & lows (ie 2013-15)
3. More concentration (production, transformation), more bottlenecks
MacKinsey report - Towards the circular economy WEF – Jan. 2014 – Ellen MacArthur Foundation
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DSPG/EL 23/04/2015
Rare Earths
Lithium
Ferrous metals
Non-ferrous
Oil 85 % dependence
PGM
(Pt, Pd, Rh) 100 % dependence
Supply National Independence
New Chinese Industry Pillars Former Chinese Industrial pillars
Graphite
Monopoly 95% 80% of global
production Autosuficient
Permanent Magnets
Vehicles chassis & powertrains
Component
Processed
RM
Defense Industry
Hybrid & Electric Vehicles
Wind turbines
Batteries
Solar panels
Construction / infrastructures
Alloys & New material formulations/compounding
Flat & Long Steel Catalytic converters
Geopolitics of Automotive Raw Materials – A Chinese example
Extraction
Refining
Strong dependence
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DSPG/EL 23/04/2015
The Renault Criticality Matrix The 2011 case, with a strong emphasis on REE
Average ICE (Renault 2011)
Mn
Mo
Ni
Nb
V
Ti
Al
Zn
Cu
Mg
In
Sn
Ag
Pd
Pt
Rh
La
Nd
Dy
Fe
Cr
Sb
Pb
Ce
SUPPLY AND PRICE RISK
IMPA
CT O
N R
ENA
ULT
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1 3 4 5
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3
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DSPG/EL 23/04/2015
New products sharpen the need for specialized materials
Lithium
Graphite
Copper
Alloy elements
Lightweighting (Mg, Al, ….)
Rare earth elements
Rare Earths content < 250 g per car
700 tons of yearly usage (La, Ce, Y, Nd, Dy)
R240 for Zoe (EV), April 2015
Cléon, France
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DSPG/EL 23/04/2015
RENAULT NEEDS FY11 en Kg FY12 en Kg FY13 en Kg FY14 en Kg
Dy - Dysprosium 9 025 8 205 3 784 3 402
Nd - Néodyme 92 872 88 677 63 033 57 077
Ce - Cérium 99 527 115 600 84 750 127 900
La - Lanthane 14 751 16 351 13 731 0
Pr - Praséodyne 24 775 23 475 16 900 13 838
Tb - Terbium 162 136 203 194
Y - Yttrium 702 894 783 0
Sm - Samarium 167 214 318 318
Answers
receviedMaterial Parts name Region SAM Tier1 TierN Magnet supplier Alloy supplier
FY11
Usage
(Unit:
kg/year)
FY12
Usage
(Unit:
kg/year)
FY12
quantity
secured
Y/N
FY13
Usage
(Unit:
kg/year)
FY13
quantity
secured
Y/N
FY14
Usage
(Unit:
kg/year)
FY14
quantity
secured
Y/N
1Dy SPEAKER EU X. Gruson FAITAL N/A San Huan
Baotou City San Long
Rare Metals CO.,LTD275 146
indexatio
n140 Y 90 indexation
1Dy SPEAKER Korea X. Gruson Bose N/A Tridus Magnetics San Huan Lucky 681 576 510 510
1Dy SPEAKER EU X. Gruson Bose N/A Tridus Magnetics San Huan Lucky 568 622 555 Y 555 Y
1Dy SPEAKER EU X. Gruson PANASONIC N/A nc nc ? ? ? x Y
1Dy E-Compressor EU C. Ragot DENSO 0 0 0
1 Dy Steering EU A. Laffitte TRW TRW San Huan Magnequench 4 500 3 150 Yes 400 Yes 0 Yes
1 Dy Steering EU A. Laffitte NSK Nidec Daido Electronics MQI 1 700 1 600 Yes 0 Yes 0 Yes
1Dy Steering EU A. Laffitte JTEKT Melco Hitachi not known 0 788 Yes 800 Yes 800 Yes
1Dy Ignition Coil EU V. Cébé ELDOR 230 324 225 225
1Dy
CAM/Crank angle
sensorEU V. Cébé CONTINENTAL nc
VACCUMSCHMELZ
Enc 197 307 210 210
1Dy
CAM/Crank angle
sensorEU V. Cébé ELECTRIFIL nc nc nc 193 223 107 107
1 Dy EGR module EU F. Bernard VALEO nc nc nc 11 3 4
1CuTe Starter S&S EU M. Vezine VALEO nc nc nc 0 0 0 0
1 Dy Module EU EH. Redouane BOSCH TBC TBC
1 Dy Module EU EH. Redouane TI TBC TBC
1Dy
Magnet on diesel
EC pumpChina EH. Redouane AISAN Pacific Metals 22 22
1Dy DC4- DCT Europe N. Mahjoubi GETRAG Nidec
Epson/Hitachi/San
Huan457 259 Y 479 Y 525 Y
1Dy DC4- DCT Europe N. Mahjoubi GETRAG
Conti
(Brose)VAC/Atlas 136 147 Y 272 Y 298 Y
1 Dy UPA Buzzer EUROPE X. Helme-Guizon VALEO 77 60 N 60 N 60
1Nd2O3 Catalyst Europe L. Grepilloux 9 351 9 491 5 110
1Nd Steering EU A. Laffitte TRW TRW San Huan Magnequench 23 900 16 730 Yes 1 300 Yes 0 Yes
1Nd Steering EU A. Laffitte NSK Nidec Daido Electronics MQI 24 800 24 100 Yes 16 200 Yes 15 000 Yes
1Nd Steering EU A. Laffitte NSK Nidec Daido Electronics MQI 18 200 18 200 Yes 6 100 Yes 5 000 Yes
1Nd Steering EU A. Laffitte JTEKT Melco Hitachi not known 0 4 183 Yes 17 600 Yes 20 000 Yes
1Nd SPEAKER EU X. Gruson BOSE N/A Tridus Magnetics San Huan Lucky 6 628 7 412 6 606 Y 6 606 Y
1Nd SPEAKER EU X. Gruson BOSE N/A Tridus Magnetics San Huan Lucky 6 822 5 769 5 112 Y 5 112 Y
1Nd SPEAKER EU X. Gruson PANASONIC x x
1Nd
Magnet on diesel
EC pumpChina EH. Redouane AISAN Pacific Metals 120 120
1Nd UPA Buzzer EUROPE X. Helme-Guizon VALEO 230 200 N 170 N 170
1Nd
Steering Angle
Sensor
EUROPE
/KOREAX. Helme-Guizon YAZAKI Bosch 32 40 N 40 N 40
1Nd
Moteur glissières
X91-X95Europe H. Néant FAURECIA SHB / L&B ? 2,3 g/moteur 95 88 NO 75 NO
1Nd DC4- DCT Europe N. Mahjoubi GETRAG Nidec
Epson/Hitachi/San
Huan2 202 1 802 Y 3 329 Y 3 643 Y
1Nd DC4- DCT Europe N. Mahjoubi GETRAG
Conti
(Brose)VAC/Atlas 610 662 Y 1 224 Y 1 339 Y
1Nd FPM EU EH. Redouane TI TBD 3 1 47 47
1Nd CAM/Crank angle sensor EU V. Cébé CONTINENTAL nc VACCUMSCHMELZE nc 540 540
1Nd CAM/Crank angle sensor EU V. Cébé ELECTRIFIL nc nc nc 19 19
1 Nd Ignition Coil EU V. CébéZHEJIANG DONGYANG DMEGC MAGNETICS Co., LTD 230 324 870 870
1 CeO2 Catalyst EU L. Grepilloux 99 527 115 600 84 750 127 900
1 La2O3 Catalyst EU L. Grepilloux 14 600 16 200 13 580
1
La Engine cooling EU C. Ragot BOSCH 151 151 151
1 La FPM EU EH. Redouane TI TBD 0 13 95 95
1
La
Magnet on
gasoline DC
pump (EFP5.6)
China EH. Redouane AISAN TDK 21 21 0 0
1
La
Magnet on
gasoline DC
pump (EFP8.5)
China EH. Redouane AISAN TDK 27 59 59
1
LaMagnet on diesel
DC pumpChina EH. Redouane AISAN TDK 168 373 373
1
La Starter Motor EU M. Vezine MITSUBISHI TDK 1 693 1 651 Y 1 975 TBC 2 563 TBC
1
La Starter Motor EU M. Vezine HITACHI TDK N/A N/A Y 2 TBC 35 TBC
1
La Starter Motor EU M. Vezine BOSCH N/A N/A Y 27 TBC 277 TBC
1
LaMagnet on DC
motorChina V. Cébé AISAN TDK 334 428 637 637
1 Pr Steering EU A. Laffitte NSK Nidec Daido Electronics MQI 16 100 15 400 Yes 100 Yes 80 Yes
1 Pr Steering EU A. Laffitte NSK Nidec Daido Electronics MQI 600 600 Yes 15 000 Yes 13 000 YEs
1Pr6O11 Catalyst EU L. Grepilloux 5 700 6 200 580
1Pr
Moteur glissières
X91-X95Europe H. Néant FAURECIA SHB / L&B ? 0,26g / moteur 11 10 NO 9 NO
1Pr-oxide
Moteur glissières
X91-X95Europe H. Néant FAURECIA SHB / L&B ? 0,64g / moteur 26 24 NO 21 NO
1Pr SPEAKER EU X. Gruson FAITAL N/A San Huan
Baotou City San Long
Rare Metals CO.,LTD2 338 1 241 1 190 Y 758 Y
1
Tb SPEAKER EU X. Gruson FAITAL N/A San HuanBaotou City San Long
Rare Metals CO.,LTD103 55 53
yes
indexation30 Y
1 Tb Starter Motor EU M. Vezine VALEO (TBC) N/A N/A Y 0 TBC 0 TBC
1Tb DC4- DCT Europe N. Mahjoubi GETRAG Nidec San Huan 59 81 Y 150 N 164
1 Y2O3 Catalyst EU L. Grepilloux 600 800 700
1
Yttrium-
oxide
Boitier mémo X91-
X95Europe H. Néant
assemblé par
fournisseurs
carters
extérieurs boitier
Lear
2-3 mg / pièce selon
version, 1 pièce par
siège mémo
102 94 NO 83 NO
1Sm
Magnet for Gear
S/AV. Cébé TDK 167 214 318 318
ZHEJIANG DONGYANG DMEGC MAGNETICS Co., LTD
BASF/JM/UMICORE
BASF/JM/UMICORE
BASF/JM/UMICORE
BASF/JM/UMICORE
BASF/JM/UMICORE
Rare Earths, where in our cars ?
Investigation in > 3000 parts
Supplier risk analysis
4 levers activated by OEMs
1. Usage reduction
2. Sourcing change (from FOB market to Chinese domestic market)
3. REE substitution
4. Technology change (w/o REE)
Some OEMs developed also stockpiling strategy to secure
(mainly on Dysprosium)
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DSPG/EL 23/04/2015
What are the industry concerns about Rare Earths Elements ?
Access to reliable & shared materials intelligence & scenarios
We need common tools to assess exposure & supply/demand scenarios
Joint Study of French automotive industry
(CCFA, Renault, PSA, Valeo, Faurecia, PO)
Enhanced, focused technological innovation for usage optimization
Promotion of local, short-loop flow schemes within an economical and
industrial eco-system (circular economy)
Secure access to a continuous supply chain
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Effect of countermeasures were quite efficient
Main objective for the industry is to avoid « hot » situations
Example – The Dysprosium case
Key Drivers
Alternator EPS
Speaker
New Development
Seat IGN-Coil
SSG
• REE market in 2015
– Supply > Demand
– Smooth start of non-Chinese production (LREE)
– Lower REE price levels
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DSPG/EL 23/04/2015
Replacement
Aluminum wiring as replacement for
Copper...depending on Cu & Al prices
Technologies for EV motors that eliminate
our need for rare earths
externally excited synchronous motor
already applied to the Renault EV line-up
switched reluctance motor,…
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DSPG/EL 23/04/2015
Technico-economical analysis
Renault + Shredder
Solvay Rare Earths
Renault
Renault + Shredder
Renault
Identification of REE containing parts in EoL
Component shredding REE rich-powder separation
Chemical separation
Reuse by Renault Tier n suppliers
Reduction to REE metals
Rare Earths Oxide recycling
How to go further: Is it technically and economically possible to recover and recycle REE from End of Life Vehicles ?
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Les pricipales pièces contanants du néodyme dans les véhicules Renault
COL ASS ELEC
HAUT PARLEUR
VANNE RECY GAZ ECHAPP
CHANGEUR COMPACT DISQUE
BUTEE PORTE COFFRE
BUTEE SURCOURSE
COMPRESSEUR CA
SIEGE
AUTORADIO NAVIGATION
CAPTEUR ARBRE CAME
RESERVOIR CARBURANT GPL EQP
COMMANDE VITESSE EQP
Col Ass Elec 30.3 g
Changeur CD 9.4 g
Haut Parleur 15.1 g
Vanne recy gaz
échapp 9.4 g
Source: données Renault
Identification of Nd & Dy containing parts in End of Life Vehicles
Les principales pièces contenants du dysporsium
dans les véhicules Renault COL ASS ELEC
HAUT PARLEUR
ALTERNATEUR 155A
COM PRESSEUR CA
VANNE RECY GAZ ECHAPP
BOBINE ALLUM AGE
BOITE VITESSE AUTOM ATIQUE
COM M ANDE VITESSE EQP
VOLET ADM ISSION AIR ELEC
VOLET DOSEUR ELEC INTEGRE
CAPTEUR VITESSE
COM PTE-TOURS
CAPTEUR POINT M ORT HAUT
AVERTISSEUR SONORE AIDE PARKING
BUZZER ASSY
AUTORADIO NAVIGATION
RESERVOIR CARBURANT GPL EQP
AUTORADIO
TABLEAU BORD
SIEGE CONDUCTEUR AV D
Alternateur 0.66 g
Col Ass Elec 3.8 g Haut-parleur
0.98 g
Compresseur CA 0.63g
<0.6g
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DSPG/EL 23/04/2015
Loudspeakers analysis from Renault & other brands End of Life Vehicles
With some surprises at the end of the road….
CITROEN C5 ferrite
FIAT Punto ferrite
FORD Fiesta ferrite
PEUGEOT 107 ferrite
PEUGEOT 307 ferrite
PEUGEOT 206 ferrite
PEUGEOT 406 ferrite
PEUGEOT 207 ferrite
RENAULT Clio 2 ferrite
RENAULT Megane 1 ferrite
RENAULT Scenic 1 ferrite
RENAULT Clio 2 neodyme
RENAULT Clio 3 neodyme
RENAULT Laguna 2 neodyme
RENAULT Megane 1 neodyme
RENAULT Megane 2 neodyme
RENAULT Modus neodyme
RENAULT Scenic 1 neodyme
RENAULT Scenic 2 neodyme
RENAULT Twingo neodyme
RENAULT Twingo 2 neodyme
Ferrite speakers
Nd-based Speakers
No Nd speakers in other brands EoL vehicles
Technically feasible recycling process, unfortunately not economically…
80 loudspeakers dismantled
54 Renault
26 other brands
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Recommendations & Conclusions
Share economic research on materials stocks & flows at EU level
by material class
by industry sector
Give priority support to technological levers that
Reduce industry exposure (3R: Reduce, Replace and Recycle)
Increase our leverage (diversification of sourcing in the whole supply chain)
Facilitate public-industry platforms to promote lean & international
cooperation on “TOP 10” subjects
Shared databases on materials criticality
Substitution technologies
Anticipate & innovate to secure mid-term sourcing !
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New technologies & materials have always driven technical progress
Email : [email protected]